WESM not keen on PSE takeover

MANILA, Philippines — The transition committee currently managing the Wholesale Electricity Spot Market (WESM) is not keen on passing the management of the power trading floor to the Philippine Stock Exchange (PSE) since it deals with a complex commodity.

In an interview, Philippine Electricity Market Corp. (PEMC) president Oscar Ala said the main focus of the transition committee created for the interim management of WESM is its transfer to an independent market operator (IMO).

However, WESM requires technical management to deal with the complexities of electricity, he said.

“Compared to other commodities, electricity cannot be stored, although there are exemptions like pumped-storage hydroelectricity or battery energy storage,” he added.

Earlier, PSE president Ramon Monzon made a proposal to the Department of Energy (DOE) to let the bourse operate the electricity spot market.

Energy Secretary Alfonso Cusi said the agency is open to PSE’s proposal, but is also waiting for other options to operate the WESM.

The DOE is also seeking industry input as it lays down the rules for the transition of the WESM to an IMO and has drafted a circular that will promulgate and adopt the IMO Transition Plan.

The IMO Transition Plan sets out the formation and structure of the IMO, the resulting WESM governance structure, and the manner by which transition to the IMO shall be accomplished.

Incorporated in 2003, PEMC is an entity created under the Electric Power Industry Reform Act of 2001 (EPIRA) to oversee market governance and perform the functions of the market operator.

But the law stated that the WESM must be transferred to an independent market operator or IMO one year after its establishment.